July 11, 2005

Sonic lays groundwork for European joint venture, seeks U.S. patent on its remediation technology

Sonic Environmental Solutions has completed preliminary discussions in eastern Europe which could lead to a joint venture operation with an established environmental remediation company. The two companies signed a Memorandum of Understanding (MOU) which calls for the completion of a preliminary business plan and includes a priority negotiation agreement.

This initiative will focus on treatment of liquid PCB wastes using a simplified, smaller-scale version of Sonic's PCB Sonoprocess(TM), which is already operational at commercial scale in Canada. Company president and CEO Adam Sumel pointed out that in eastern Europe, "the immediate market opportunities are for the treatment of liquid PCB wastes and by entering this market we will be well established with a proven operator of our technology when the market demand to address PCB contaminated soils increases."

By contrast, Sonic has focused on the PCB soils market in North America and Japan. In these and other industrialized countries, this is where the primary market opportunity lies, as they have already dealt with much of the PCB liquid waste treatment issues. In other parts of the world where economies are in transition and the pace of environmental stewardship is just beginning to accelerate, the first priority is to address sources of PCB contamination such as contaminated oils, capacitors, etc.

In other activities, Sonic has applied to the U.S. Patent Office for a provisional patent of the company's Sonoprocess for the treatment of certain contaminants in groundwater. The patent would cover the use of Sonic's low-frequency sonic generator technology to create enhanced gas/liquid mass transfer, resulting in rapid decontamination.

Sonic's first Sonoprocess was developed for the treatment of PCB contaminated soils and liquids. This has been successfully developed to commercial scale, confirming the fundamental viability of the core sonic generator technology. The company plans to expand the range of applications for its technology by developing each Sonoprocess in joint venture partnerships with industry leaders in the application area.

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